KARACHI: Steady flow of buying orders helped cotton prices stay firm on Wednesday. There was a sudden demand for new crop cotton as spinners tried to replenish their stocks at higher volumes. According to market sources, the reason for surge in demand was the fear of rain’s impact on the crop.
Moreover, most deals were finalised at season’s highest prices.
In contrast, world’s leading cotton markets remained under pressure due to sluggish demand for cotton from the textile industry. The New York cotton also went under correction.
Meanwhile, the agriculture department has warned cotton growers of a looming pest attack in the wake of recent rains in various cotton-growing areas of Punjab. Growers have been advised not to allow rain water remain stagnant in the fields.
However, no worth-mentioning damage has been reported by last week’s rain, brokers said.
The Karachi Cotton Association lefts its spot rates unchanged. Major deals on the ready counter were: 1,000 bales from Shahdadpur at Rs6,200, 1,200 bales from Tando Adam at Rs6,200, 800 bales from Sanghar at Rs6,200, 400 bales from Hyderabad at Rs6,200, 400 bales from Mirpur Khas at Rs6,200, and 400 bales from Kotri at Rs6,200.
Published in Dawn, July 6th, 2017
